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8. On January 1st, 2019, Potato Inc. (Potato) purchased 4% of the shares of Steak Co. (Steak). At that time, Steak had 500,000 shares issued
8. On January 1st, 2019, Potato Inc. (Potato) purchased 4% of the shares of Steak Co. (Steak). At that time, Steak had 500,000 shares issued and outstanding and those shares were trading at S15 / share. During the year ended December 31, 2019, Steak declared dividends of S1.00 / share, to be paid out in 6 months. On December 31st, 2019, Steak shares were trading at $17/ share. On March 31st , 2020, Potato sold its investment in Steak shares at a selling price of $12 / share. Assume Potato's management decides to use the Fair Value through OCI model. Required: Prepare all the 2019 and 2020 journal entries for Potato Inc. (6 marks)
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